Reviewing ARC Resources (OTCMKTS:AETUF) and Sable Offshore (NYSE:SOC)

Sable Offshore (NYSE:SOC) and ARC Resources (OTCMKTS:AETUF) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 2.5% of ARC Resources shares are held by institutional investors. 14.3% of Sable Offshore shares are held by company insiders. Comparatively, 0.3% of ARC Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sable Offshore has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Sable Offshore and ARC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-319.58%	-39.11%
ARC Resources	26.33%	16.60%	10.02%

Analyst Ratings

This is a summary of current recommendations and price targets for Sable Offshore and ARC Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	1	0	4	0	2.60
ARC Resources	0	0	1	2	3.67

Sable Offshore presently has a consensus price target of $25.00, suggesting a potential upside of 3.82%. ARC Resources has a consensus price target of $25.00, suggesting a potential upside of 30.88%. Given ARC Resources’ stronger consensus rating and higher probable upside, analysts clearly believe ARC Resources is more favorable than Sable Offshore.

Valuation and Earnings

This table compares Sable Offshore and ARC Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
ARC Resources	$4.19 billion	2.70	$1.18 billion	$1.54	12.40

ARC Resources has higher revenue and earnings than Sable Offshore.

Summary

ARC Resources beats Sable Offshore on 9 of the 12 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

About ARC Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.